The expenditure of a household on food, clothing, and entertainment is in the…
2025
The expenditure of a household on food, clothing, and entertainment is in the ratio 2 : 4 : 4. In the coming
year, the cost of food is expected to fall by 10%, clothing to rise by 5%, and entertainment to fall by 15%. What is
the percent change (increase or decrease) in the total household expenditure?
- A.
5% decrease
- B.
6% increase
- C.
6% decrease
- D.
5% increase
Attempted by 13 students.
Show answer & explanation
Correct answer: C
Using expenditure ratio 2:4:4, weighted change = (2 x -10 + 4 x 5 + 4 x -15)/10 = -60/10 = -6%. Hence there is a 6% decrease.